The Coca-Cola is ubiquitous all around the world. In fact, in some parts of the U.S. all soft drinks are referred to as “coke.” (Personally, I’m still adjusting the way the Midwest calls all soft drinks “pop”, when rest of the country calls it soda.) For the Coca-Cola Company, business is about more than just soda. Their fastest growing segment is in water and healthier beverages and the majority of their revenue did not come from beverages until 2010. The Motley Fool did some digging and found six interesting things you did not know about Coca-Cola.
1. They distribute their competitor’s products. In 2010, Coca-Cola purchased the major distributor of Dr. Pepper Snapple Group products, which is why they can be found in Coca-Cola vending machines in North America. .
2. Coca-Cola’s syrup used to be its biggest business. In 2008, syrup and concentrates represented 54% of Coca-Cola’s operating revenue. That changed after a big acquisition in 2010. Now in 2012, syrup only makes up 38% of Coca-Cola’s operating revenue.
3. Coca-Cola has not always outperformed the market. In fact, until recently Coca-Cola has underperformed the S&P 500.
4. Warren Buffett does not serve on the board of directors, but his son does. While Buffett’s company, Berkshire Hathway owns 400M shares, or 9% of Coca-Cola Warren and his hands off style of ownership elect not to sit on the board. Howard Buffett manages Buffett Farms does sit on the board, and his experience in the agricultural industry helps Coca-Cola’s strategy in developing nations.
5. Coca-Cola’s most heavily penetrated market is not the United States. The U.S. ranks fourth in this category with 401 servings per person in 2012, behind Mexico (745servings/person) Chile (486 servings/person) and Panama (416 servings/person).
6. Coca-Cola has room for growth. Given they are not very saturated in China and Nigeria, and their highest growth has been in Pacific and Eurasia and Africa, they are poised for strong growth, especially if they can continue to offer healthier options.